Portugal to cut 2010 deficit to 7.3 pct, hike taxes

LISBON, May 13 (BestGrowthStock) – Portugal will deepen budget
deficit cuts by imposing extraordinary income taxes of up to 1.5
percent, hiking value-added tax by 1 percentage point and
imposing a 2.5 percent tax on large companies and banks’
profits.

Prime Minister Jose Socrates said the measures will allow
Portugal to cut the budget deficit this year to 7.3 percent of
GDP, lower than the 8.3 percent it announced in March.

The measures will also allow it to cut 2011’s fiscal gap
goal by two percentage points to 4.6 percent of GDP from its
earlier 6.6 percent target.

“These measures are crucial to re-establish confidence and
secure financing for the economy” Socrates told a news briefing.

The prime minister added that salaries of top-level public
sector workers and politicians will be cut by 5 percent.

Stock Market Report

(Reporting by Sergio Goncalves; writing by Shrikesh
Laxmidas; editing by Jason Webb)

Portugal to cut 2010 deficit to 7.3 pct, hike taxes